- Statutory Audit
- Internal Audit
- GST Audits
- Special Audits
- Tax Audit
Office Address
10A, Ramkrishna Paramhansa
Deb Road, Dakshineswar, Kolkata
West Bengal, 700035
Phone Number
+91 - 8910758502
Email Address
pal_prithwiraj@yahoo.co.in
10A, Ramkrishna Paramhansa
Deb Road, Dakshineswar, Kolkata
West Bengal, 700035
+91 - 8910758502
pal_prithwiraj@yahoo.co.in
We offer a wide range of tailored services to provide assurance on control effectiveness and support you in achieving the organizations objectives. Our emphasis is on ensuring strong internal controls to minimize the risk of accidental or deliberate errors and omissions.
Statutory Audit
Embrace Accurate and Fair Auditing of Accounting Records with us!
Our auditing process ensures compliance with the statute and provides a clear and honest representation of your accounting records, tailored to your unique legal situation.
Basically, this means we’re going to be checking all your accounting records to make sure they’re accurate and fair. It’s like a reality TV show for your financial statements – we’ll be looking for any hidden drama or shady deals.
But seriously, auditing is important stuff. To make sure your company’s books are in order and playing by the rules, a Chartered Accountant (CA) will be reviewing your reports. They’ll make sure everything is on the up-and-up and follows the Indian Company Act.
A statutory audit is a legally mandated review of a company's financial records to ensure compliance with relevant laws and regulations.
A statutory audit provides assurance to stakeholders regarding the accuracy and fairness of financial reporting, enhances transparency, and helps maintain compliance with regulatory requirements.
A qualified Chartered Accountant (CA) conducts the statutory audit, providing an independent assessment of the company's financial statements.
A statutory audit helps identify any discrepancies or irregularities in financial reporting, improves transparency and accountability, enhances investor confidence, and ensures compliance with legal requirements.
No, a statutory audit is a legal requirement for certain types of companies as per the Indian Company Act, and opting out is not permissible. Compliance with statutory audit requirements is essential for maintaining transparency and credibility in financial reporting.
Internal Audit
If you’re looking to gain a fresh perspective on your organization’s functional efficiency— WELCOME! You’re at the right place.
Our specialty lies in conducting internal and management audits that provide a comprehensive and unbiased analysis. We’ll help you identify areas for improvement and optimize your operations for maximum success!
Our team of professionals is committed to providing high-quality services with the utmost integrity. We offer customized Internal Audit services tailored to your specific needs, helping you to achieve your business goals, overcome operational challenges, comply with regulatory norms and manage reporting requirements.
To ensure effective risk management, we use a “Risk-Based Audit” (RBA) approach and other advanced tools and techniques to accomplish audit objectives.
So you can relax, while we work dedicatedly to help you enhance your business performance and maximize your potential.
What We Offer:
Our team has extensive experience in conducting all types of audits for large and medium-sized business entities. Not only that, we can also prepare financial statements in compliance with international accounting standards (IAS) and generally accepted accounting principles (GAAP), including the US-GAAP. Our Internal/Management audits are tailored to your specific needs and aim to identify areas of improvement for your business especially focusing on:
Conducting a critical evaluation of internal controls adopted by organizations and providing suggestions to strengthen them.
Reviewing existing business processes, policies and practices to suggest best practices, including benchmarking.
Reviewing the effectiveness of the Risk Management Framework and providing suggestions for improvement.
Conducting constructive review of operations while keeping the client’s business needs in focus.
Identifying areas for cost reduction, revenue optimization, and improvement in operational efficiency and providing assistance in their implementation.
Offering practical and result-oriented solutions followed by support for implementation.
Ensuring proper compliance with regulatory provisions and operational manuals.
Assisting clients in meeting their Corporate Governance requirements.
Our Services Includes:
Outsource your worries: Complete outsourcing of internal audit function.
Keeping things in check: Compliance with management controls
Improving systems, one process at a time: System and process improvements
Don’t be a victim of financial impropriety: Financial impropriety and fraud audits
Making informed decisions: Due diligence for acquisitions and investments
Stronger together: Co-sourcing and supplementing internal audit function
Extra helping hands: Deputation of personnel to strengthen the internal audit function
Laser-focused on transactions: Conducting concurrent audits with dedicated teams
Get the bigger picture: Conducting operational audits
Investigating with purpose: Conducting special purpose investigative audits
Bridging the gap between technology and business: Techno-Commercial Concurrent Reviews
We place great emphasis on establishing robust internal control systems to prevent any mishaps, intentional or otherwise—From safeguarding assets to ensuring compliance with internal operating policies and guidelines, we leave no stone unturned.
We’re here to make your resources work smarter, not harder, so you can seize every opportunity that comes your way.
An internal audit helps identify areas for improvement in internal controls, risk management, and operational efficiency. It provides valuable insights to management and helps ensure the organization achieves its objectives effectively.
Internal audits are conducted by internal auditors who are employees of the organization but remain independent from the areas they audit. They possess expertise in evaluating risks and controls within the organization.
An internal audit helps management identify weaknesses in internal controls, mitigate risks, prevent fraud, ensure compliance with regulations, and improve overall organizational performance.
GST Audit
GST – the one tax to rule them all.
GST, the ultimate tax, will absorb all others, bringing forth a unified “One Nation, One Tax” system. However, to ensure the accuracy of payments and refunds, some taxable individuals will undergo GST audits.
But don’t worry!— we ensure that your business stays compliant and your hard-earned money stays in your pocket where it belongs.
Threshold for Audit
Under the present GST regulations, individuals with a turnover greater than Rs 1 crore must have their financial statements audited by a CA or CMA. These individuals must also electronically file a reconciliation document (GSTR 9B) and the audited consolidated reports by December 31 of the following financial year. In addition, a comparison of the recorded supplies with the audited financial document and other specified information must also be submitted.
Rectifications after the return Based on the results of the audit under GST
If someone realizes they made a mistake or left out important information after submitting their tax return, they can still fix it, but they’ll need to pay interest. However, they can’t make any changes after the deadline for filing the return for September or the second quarter of the financial year, or after the actual date they filed the return, whichever comes earlier.
For instance, if X made a mistake on his Oct 2017 return and submitted the annual return for FY 2017-18 on Aug 31, 2018, —he can rectify the mistake until the earlier of two dates:
20th Oct 2018 (the last date for filing Sep return) or 31st August 2018 (the actual date of filing of relevant annual return).
However, If the results of the tax authorities’ scrutiny or audit reveal any errors, then taxpayers won’t be allowed to make any further corrections.
Audit by Tax Authorities
Taxpayers may be audited by the CGST/SGST Commissioner or an appointed officer, and the method and pace of the audit will be determined at a later date.
The taxpayer must be given at least 15 days’ notice before the audit begins, and the audit report must be completed within 3 months of the start date.
If necessary, the Commissioner may extend the audit period for up to six months with a written explanation.
“For those subject to audit, we’ll leave no stone unturned, ensuring refunds are claimed, and correct payments confirmed.”
Responsibilities of the auditor
The taxable individual shall:
The auditor has the right to check a taxable individual’s records, but the individual must cooperate by providing access to their books and other documents. If there are any issues discovered during the audit, the individual will be notified within 30 days.
If there are unpaid taxes or inaccuracies in the tax return, the appropriate procedures will be followed to resolve the issue. It is important for the individual to provide assistance and support during the audit to ensure a smooth process.
Special Audit
When can a special audit be initiated?
Under certain circumstances, a special audit may be initiated by the Assistant Commissioner to investigate cases of incorrect value declaration or incorrect credit availing. This can happen during any stage of scrutiny, enquiry, or investigation. The decision to conduct a special audit is based on the nature and complexity of the case, as well as the revenue interest.
Note: Even if a taxpayer’s books have been audited previously, a special audit may still be initiated.
Who will order and conduct a special audit?
The Assistant Commissioner (with approval from the Commissioner) can order a special audit in writing. A chartered accountant or cost accountant appointed by the Commissioner will conduct the audit.
Time limit for special audit:
The auditor will be expected to deliver the report within 90 days, but this can be extended for an additional 90 days if requested by the taxpayer or auditor.
Price
The Commissioner will calculate and charge the costs of the investigation and report, as well as the remuneration of the inspector.
Findings of special audit
The taxable person will have the opportunity to be heard during the findings of the special audit. If the audit detects unpaid or shortpaid tax, incorrect refunds, or wrongly availed input tax credit, demand and recovery actions will be initiated.
GST as a new tax regime that has already made an impact in India. Businesses may face challenges during the transition and application of GST. To learn more about GST, please visit our blogs.
What We Do
Tax Audit
Income Tax Audit under Section 44AB – Criteria, Audit Report, Penalty
Before we dive into the world of tax audits, let’s take a moment to appreciate the term “audit” itself. To audaciously define it, audit is like a formal inspection of an organization’s financial innards.
Think of it as a thorough checkup, like when you go to the dentist and they poke around your mouth with sharp tools – but instead of teeth, they’re examining your money matters. It’s like an x-ray for your accounting, revealing any hidden cavities or decay. But fear not, for with the right preparation, a tax audit can be as painless as a trip to the spa.
What is a tax audit?
Taxes and audits – two words that can strike fear in the hearts of even the most seasoned business owners. But fear not, for tax audits aren’t as scary as they sound! In fact, they can be quite helpful.
Simply put, a tax audit is an examination of a business’s financial records from an income tax perspective. It’s just one of the many types of audits conducted under different laws. While some audits may cause stress and headaches, tax audits can actually make the process of computing income for tax returns a breeze. So, no need to sweat it – embrace the tax audit!
Objectives of tax audit
The taxpayer should maintain accurate and up-to-date books of accounts, which must be certified by a tax auditor.
The tax auditor is required to report any discrepancies or observations discovered during a thorough examination of the books of accounts.
The tax audit report should include specific information such as tax depreciation and compliance with various provisions of the income tax law.
These steps help the tax authorities verify the accuracy of the taxpayer’s income tax returns and simplify the calculation and verification of total income and deductions.
Who is mandatorily subject to tax audit?
When a business’s sales, turnover or gross receipts exceed Rs 1 crore in a financial year, a tax audit is mandatory. But there are other situations where a taxpayer might need to have their accounts audited. Check out the tables below for more information:
| Category of person | Threshold |
|---|---|
| BUSINESS | |
| Operating a business (excluding those who choose presumptive taxation) | Criteria for tax audit requirement: ● Total sales, turnover or gross receipts exceeding Rs.1 crore in FY ● Cash transactions limited to 5% of total gross receipts and payments, threshold turnover limit for tax audit is increased to Rs.10 crores (from FY 2020-21 onwards) |
| Business qualifying for presumptive taxation scheme under Section 44AE, 44BB or 44BBB | Claims profits or gains below the prescribed limit under the presumptive taxation scheme |
| Eligible business for presumptive taxation under Section 44AD. | Reports income below prescribed limit for presumptive tax scheme and exceeds basic threshold limit |
| Business opting out of presumptive taxation under Section 44AD in any one financial year during the lock-in period of 5 consecutive years | If income exceeds the maximum tax-free limit in the subsequent 5 consecutive tax years from the financial year when opting out of the presumptive taxation scheme. |
| Business declaring profits under Section 44AD’s presumptive taxation scheme | If the income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from when the presumptive taxation was not opted for. |
| Carrying on business eligible for presumptive taxation under Section 44AD | Businesses carrying on with total sales, turnover, or gross receipts not exceeding Rs 2 crore in the financial year are exempt from tax audit. |
| PROFESSION | |
| Carrying on profession | Carrying on profession with total gross receipts exceeding Rs. 50 lakh in the financial year. |
| Eligible for presumptive taxation under Section 44ADA while carrying on a profession | ● Claims profits or gains below the prescribed limit under the presumptive taxation scheme ● Income exceeds the maximum amount not chargeable to income tax. |
| Business loss | |
| In case of loss from business when sales, turnover or gross receipts exceed 1 crore, the taxpayer is subject to tax audit under 44AB | If the total sales, turnover, or gross receipts are more than Rs 1 crore. |
| If the taxpayer’s total income is above the basic threshold limit, but they have experienced a loss from conducting their business (without opting for the presumptive taxation scheme). | If the business incurs a loss and the sales, turnover or gross receipts exceed 1 crore, the taxpayer is liable for a tax audit under section 44AB. |
| If the taxpayer is carrying on a business and has opted for presumptive taxation scheme under Section 44AD, and incurs a business loss, but their income is below the basic threshold limit. | Tax audit not applicable |
| If a taxpayer carries on a business and is eligible for the presumptive taxation scheme under Section 44AD, but incurs a loss and their income exceeds the basic threshold limit, then they are not eligible for the presumptive taxation scheme and will have to file their tax return as per the regular provisions. | The taxpayer declares income below the limits specified under the presumptive tax scheme, but their total income for the year exceeds the basic threshold limit |
Amendments in the above provision:
As per the Finance Act of 2020, taxpayers with a turnover exceeding Rs. 1 crore were required to undergo a tax audit, unless their cash receipts and payments were limited to 5% of gross receipts/turnover. However, from the Assessment Year 2020-21 (Financial Year 2019-20), this threshold limit was increased to Rs. 5 crores.
Further, the Finance Act of 2021 raised the threshold limit to Rs. 10 crores, effective from April 1, 2021, provided that cash transactions do not exceed 5% of the total transactions.
We present the various categories of taxpayers below:
What happens if a person is required to get his accounts audited under any other law for eg. statutory audit of companies under company law provisions?
If the taxpayer’s accounts have already been audited under any other law, then there is no need to conduct a separate audit for income tax purposes. As long as the audit is completed before the deadline for filing the return, the taxpayer can submit the required audit report under the Income Tax Act.
What constitutes an Audit report?
The tax auditor has to submit a report in a specific format, either Form 3CA or Form 3CB, depending on whether the taxpayer is required to have their accounts audited under other laws. If a taxpayer is required to have their accounts audited under other laws, Form No. 3CA is used, and if not, Form No. 3CB is used. The audit report must also include prescribed information in Form No. 3CD.
How and when tax audit reports shall be furnished?
The tax auditor must submit the tax audit report online using his CA login credentials. The taxpayer must also add the CA’s details in their login portal. Once the report is uploaded, the taxpayer must either accept or reject it through their login portal. In case of rejection, the audit process must be repeated until the report is accepted.
Remember to file the tax audit report by the due date for filing the income tax return. The deadline is 30th November of the following year for taxpayers engaged in international transactions and 30th September of the following year for others. The assessment year is the subsequent year itself.
Penalty of non filing or delay in filing tax audit report
Failure to comply with the requirement of tax audit may result in a penalty of either 0.5% of the total sales, turnover, or gross receipts or Rs 1,50,000, whichever is lower. However, if there is a reasonable cause for such failure, no penalty will be imposed under section 271B.
Some of the reasonable causes accepted by Tribunals/Courts are:
natural calamities:
resignation of the tax auditor and consequent delay,
labor problems such as strikes or lockouts,
loss of accounts due to situations beyond the control of the assessee, and
physical inability or death of the partner in charge of the accounts.